VAIKOM PALLIPRATHUSSERI SERVICE CO-OPERATIVE BANK LTD Vs. STATE OF KERALAREPRESENTED BY ITS SECRTARY TO GOVERNMENT

JUDGEMENT

(1.) WRIT Petition is filed seeking to quash Ext.P6 order, for a direction directing the respondents to approve the amendments of bye- laws evidenced by Ext.P2 and for other reliefs.

(2.) PETITIONER is the Co-operative Bank registered in the year 1925. Ext.P1 is the copy of the registered bye-law. The general body of the petitioner-Bank in the meeting held on 7/10/2007 resolved to effect certain amendments in its registered bye-laws. It is averred that the amendments were intended to improve the business of the Bank. As per the proposed amendment the petitioner intended to give D class membership to the persons who are working or residing in the Vaikom and Naduvila Muri Villages. Copy of the amendments of bye- laws is produced and marked as Ext.P2. The 2nd respondent rejected the proposal for amendments. The rejected amendments were for increasing the share capital and to incorporate a new clause as 5(f) to make provision to give membership to the persons who are residing and doing business in Vaikom and Naduvila Muri Villages so as to avail consumer and business loan. Aggrieved by the order of rejection, the petitioner filed statutory appeal before the lst respondent. It is submitted that the Government as per Ext.P6 order dismissed the appeal without considering the contentions and stating the reason that if the amendments sought for are approved that would lead for unhealthy competition among the Co-operative Societies.

(3.) TAKING into consideration the contentions of the petitioner and the orders passed in the application for amendment submitted by similarly situated Banks/Societies, this Court is of the view that the matter requires re-consideration. In the above circumstance, Ext.P6 order is set aside. There will be a direction to the lst respondent to re-consider Ext.P6 and pass order afresh, after affording an opportunity of being heard to the petitioner, as expeditiously as possible, at any rate, within a period of two months from the date of receipt of a copy of this judgment. Writ Petition is disposed of as above.